Current Trend
Schlumberger shows mixed performance with a downtrend dominating the medium-term outlook. The stock trades at $35.11, down 8.42% year-to-date and off 16.17% over the past six months. Short-term volatility remains high: after a 3.51% weekly gain, the shares fell 1.15% on the last trading day. The monthly trend stays negative (-4.70%), indicating continued pressure on the price.
Investment Thesis
The appeal of SLB stems from its leadership in oil-field technology, with a focus on digitalization and ultra-deepwater drilling. The company is expanding its tech portfolio through strategic acquisitions and strengthening its position in the high-margin ultra-deep segment. Key markets include Brazil and other regions with mature offshore operations, where demand for advanced technology remains steady.
Thesis Status
The current picture partially validates the thesis. Despite price pressure, the company continues to win large contracts and broaden its technological capabilities. However, market expectations of lower Q3 earnings create short-term challenges. Strategic acquisition initiatives and big contracts support the long-term outlook, but they need time to translate into financial results.
Key Drivers
Main drivers are the upcoming Q3 results with expectations of significant earnings decline. Positive impact comes from the acquisition of RESMAN Energy Technology, which bolsters the tech portfolio. A key growth catalyst is a major contract with Petrobras to service up to 35 ultra-deep wells in Brazil, with work slated to start mid-2026.
Technical Picture
Technically, the stock is in a downtrend, forming a series of lower highs. The current $35.11 level sits well below the yearly highs. A recent 3.51% bounce over five days was erased by a 1.15% drop yesterday, highlighting the fragility of upward moves. Volatility remains elevated, offering short-term trading opportunities but also added risk for long-term holders.
Bull Case
- Securing a large Petrobras contract to service up to 35 ultra-deep wells, which strengthens its digital technology position
- Strategic acquisition of RESMAN Energy Technology, expanding the company’s technology portfolio
- Contract work slated to begin mid-2026, providing revenue visibility
- Recent outperformance of the broader market shows relative resilience
- Analysts label the stock as “absurdly cheap” and a buying opportunity
Bear Case
- Expectations of significant earnings decline in Q3 weigh on the price
- A 16.17% drop over the past six months signals a persistent downtrend
- Negative YTD performance (-8.42%) reflects fundamental challenges
- Monthly decline of 4.70% shows ongoing seller pressure
- Yesterday’s 1.15% dip after a weekly gain underscores the fragility of upward moves